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Lenders not getting enough help to prevent decline

Lenders not getting enough help to prevent decline

Category: Mortgages

Updated: 12/03/2009
First Published: 12/03/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Financial institutions are providing secured loans and mortgages, but help for the market has not been enough to prevent a decline, it has been stated.

Michael Coogan, director general of the Council of Mortgage Lenders (CML), noted that there is a perception that lenders are not currently making funds available, despite calls to do so.

But he explained: "Government schemes to restore the flow of funds are primarily focused on a few large banks and recent lending commitments by a few lenders cannot fill the gap overnight."

Mr Coogan's comments came as the CML released figures showing loans granted for house purchase have experienced a significant drop.

Just 23,400 deals for this purchase were agreed in January, down from 48,600 at the same time in 2008 and 32,400 in the previous month.

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